jaytest, Author at Atlas Logistics UK LTD

April 1^st 2017 saw the introduction of the new carrier alliances which will last for the next decade or so. The previous four shipping alliances have gone to be replaced by just three. The new alliances have been formed due to several key factors. Back in 2008 many of the major liners started investing in bigger container ships. These ships entered the market with lower running costs and thus some core lines were able to offer lower than their competitors on given trades. To stay competitive other carriers then began investing in these larger more economical vessels so resulting in an over capacity on many routes. Other factors that helped decide the creation of the new alliances included the fall of Hanjin Shipping, unprecedentedly low rates throughout 2016 and a high number of mergers throughout the ocean shipping industry. The new carrier alliances represent nearly 80% of the global container capacity and are currently divided as below:

The 2M Alliance – Maersk, HMM, Hamburg SUD & MSC

The Alliance – NYK, MOL, K Line, Yang-Ming & Hapag Lloyd (with UASC)

The Ocean Alliance – CMA-CGM, Evergreen, OOCL, APL & Cosco Shipping.

So, what sort of effect will these new mergers have on the current schedules and availability offered to shippers? Schedules will be more fixed and less likely to change once the new alliances are settled in. Some ports are seeing an increase in the amount of calls they receive, whilst others are seeing a reduction. For example, Singapore prior to the new alliances received 29 calls per week, this will increase to 34 now the new alliances have kicked in. On the other hand, both Hong Kong and Port Kelang will see a reduction in the services it receives from the alliances. Hong Kong from 15 to 10 calls and Port Kelang 11 to 5 calls. As a consequence of the services being shifted there also appears to have been a short-term capacity issue, such as the route back to Asia from Northern Europe. Being able to get space and competitive rates has been proving difficult for many freight forwards and shippers for some time but is now showing signs of easing. In regards to speed of service a high percentage of routes will have a faster transit time. Asia – Europe will be 60% faster whilst transatlantic will have 47% of its lanes faster. All this said there will still be space in the market for the smaller independent liners and specialist carriers. Atlas Logistics UK Ltd is well placed for access to all the global liners both import, export and cross-trade. Just contact us if you have any questions or requirements in this area.

The EU celebrated the 60^th anniversary of the Treaty of Rome on March 25th, which signified the start of the European Blocs formation. Leaders from 27 of the 28 member states were present to renew their commitment to the EU with the exclusion of the UK which started proceedings on March 29^th to leave the community with the triggering of Article 50. Article 50 is part of the Lisbon Treaty which was signed on the 13^th December 2007 by the then 27 member states. The Lisbon Treaty was created for two reasons, as a replacement for the Constitution Treaty which in 2005, the French and Dutch voters rejected, and due to the enlargement of the size in EU membership in 2004, the community needed to reform the working of the European Union.

So now that Article 50 is invoked the difficult navigation of the process to formally leave the European Union for the United Kingdom starts. So, what happens now? Where does the United Kingdom go from here? The United Kingdom have two years to negotiate a separation deal before our membership ceases in 2019 and with this in mind the government published The Great Repeal Bill White Paper on 30^th March outlining the governments approach to converting many of the existing EU laws into UK domestic law. These should be integrated into UK law by the end of 2017, so they will not be a point of negotiation with the EU. These laws include for instance worker’s rights and some environmental law. There will be separate bills for customs and immigration. The UK has to abide by the EU laws and treaties throughout this negotiation phase but cannot be part of any decision making within the EU.

The first major step for the EU is on the 29^th April 2017 there will be an EU Summit where the leaders start to discuss the withdrawal. They should agree that a mandate is passed by the European Commission to negotiate with the UK. Shortly after this negotiating guidelines will be published by them. Negotiations can then start between the two sides. Speculation is rife the EU will want a divorce bill agreed by the UK prior to any negotiations. Current figures for this are varying from £3 to £50 billion pound’s sterling.

Other key areas of negotiation include but are not limited to, what happens to the rights of British people living in other EU member states and of the EU citizens currently in the UK, cross border security arrangements and intelligence sharing, whether we can enter a free trade deal with our own trade deals internationally rather than access the single market, fishing rights within EU waters and what happens to the unspent EU funds the UK has contributed? These negotiations could further be hindered by both the French presidential elections in May 2017 and the German parliamentary elections at the end of September 2017.

The UK aims to have the negotiations completed by October 2018 then The Houses of Parliament, European Parliament and European Council all need to vote in agreeance of any bill. Within the European Council at least 20 countries with 65% of the EU population need to approve this deal. If not then it is back to the negotiating table. There is a two-year deadline on this, so if no agreement has been made this period can be extended but only if all 27 countries agree. If not then at midnight on March 29^th 2019 the UK will cease being a member of the EU and will formally withdraw.

So after all this is it possible for the UK to re-join the EU at a later date should it see fit? In reference to Article 49 of the Lisbon Treaty states “Any European State which respects the values referred to in Article 2 and is committed to promoting them may apply to become a member of the Union.” On this basis, it is not out of the question but all the current member states at the time must agree to it.

References:

The Lisbon Treaty – http://www.lisbon-treaty.org/wcm/the-lisbon-treaty/treaty-on-European-union-and-comments/title-6-final-provisions/137-article-50.html;

BBC News – http://www.bbc.co.uk/news/politics/uk_leaves_the_eu

As much of the World celebrates the Lunar New Year we thought it timely in our February blog to mention a little of the impacts on global trade and specifically the supply chain. Prior to this celebration, it was very evident in the media about ships being full, cargo being delayed and liners omitting ports of call because of congestion at some Far East ports, especially those in China.

The start of a new year herald’s great excitement, and with The Year of the Rooster that is no exception. The Rooster is almost the epitome of fidelity and punctuality under the Chinese zodiac. For ancestors who had no alarm clocks, the crowing was significant, as it could awaken people to get up and start their working day. Whilst the Far East enjoys some fantastic celebrations and pageants as we saw in Hong Kong, where it coincided with its 20th anniversary as a Special Administrative Region this year; we should all be ready to get up early and kick start 2017 with vigour.

Much money is spent celebrating these events and making it special. For example, in Hong Kong the Lunar New Year pyrotechnics display was one of the most anticipated events during the whole holiday. Almost 24,000 shells being fired from three barges in the harbour to mark The Year of the Rooster. The 23-minute display cost about HK$8 million, paid for by sponsors “Unique Timepieces by Halewinner”, according to the Home Affairs Bureau of Hong Kong.

Many suppliers and manufacturers in the Far East will be enjoying the celebrations back at home with their families. However, all this time of celebration does pose difficulties for global trade, as does any national holiday period the World over. Supply Chains are now built to cope with these annual events but that does not stop it causing challenges. Early February is already showing signs of vessels being full. The knock-on effect to this will be the airlines are full too, so planning in advance to avoid any costly and avoidable headaches is key to minimising the effects on your logistics.

Origin factories will come back to work within a few days, then the rush will be back on to move freight and so the annual cycle begins again. It is hugely exciting and with many changes around the World, being the first to seize on new opportunities is paramount. Exploring every option is the key to the success of any business. In the logistics sector, we have solutions for sea, air, plus air/sea services via the Middle East and now the new rail services through the Old Silk Route to import goods specifically from China to the UK.

Recently the first freight direct train service from China to the UK arrived in London on Wednesday 17.1.2017 completing its 18-day trip. Some 34 containers packed with mainly clothes and other high street goods completed the 7,456-mile (11,999km) journey. After setting out from the Chinese industrial city of Yiwu on 1.1.2017, the East Wind train crossed Kazakhstan, Russia, Belarus, Poland, Germany, Belgium and France before passing under the Channel and arriving at the London Euro rail freight hub, close to the River Thames.

With the myriad of options available to the supply chain and the challenges of 2017 which will no doubt bring some real success for many, it is a good time to celebrate The Year of the Rooster with great vigour. Be ready to rise to the opportunities of 2017 and don’t forget you can reach out to Atlas Logistics UK Ltd for bespoke solutions on any of the items discussed in this blog.

And as they say in China for this new lunar year, 祝来年好运，并取得更大的成就。 — “Good luck and great success in the coming new year.”

When dealing with overseas transactions companies need to make all the necessary arrangements to get the cargo into or out of the UK. Whilst this can be done by the trading companies themselves, many choose to use a freight forwarder to take over these formalities. In the UK importing or exporting requires a lot of knowledge to be done successfully. A freight forwarder can make sure you have all the basics covered as well as being versed in the more complex shipment. If you have just set up in the UK and have your first shipment to import, you may have your VAT number but did you know that you also need an EORI number? This Economic Operator Registration & Identification (EORI) number is linked to your VAT number and is required to be declared on all customs entries. A decent reliable freight forwarder will be able to help and guide you through this type of scenario.

Freight forwarders are an agent that acts on behalf of importers and exporters to organise the transportation of goods by the most efficient means possible. The International Federation of Freight Forwarders Associations (FIATA), shorthand description for a freight forwarder is “the architect of transport”. The forwarders can use a different variety of transport modes to move the customer’s cargo from A to B. They may collect the cargo from the manufacturing warehouse via a truck, then road freight it to an airport or a seaport. The forwarder will get the goods ready for shipment by clearing customs, completing security and preparing the shipment documents before they then send it to the arrival port of destination. The cargo is cleared locally before being transported to the final destination whether it be by road or rail. Some freight forwarders operate their own vehicles and warehouses but the majority do not hold these facilities. They select the best supplier for each sector of the shipment to complete the movement. Some large companies like Tesco and Marks and Spencer, operate their own vehicles (Beneficial Cargo Owners – BCOs). However, they still work with freight forwarders for help in customs clearing their shipments and to help manage their supply chain process.

In the UK, freight forwarding in an unregulated industry. Where as in the likes of the USA and Australia formal training is required for customs brokerage services, in the UK there is no such basis. This means choosing the correct forwarder is a highly important decision but as its unregulated what should you look out for? Most UK based freight forwarders should be a member of the British International Freight Association (BIFA). BIFA is the trade association for freight forwarders and sets out a list of standard trading conditions which all members must adhere to. Other associations to look out for are IATA, (International Air Transportation Association), IMO (International Maritime Organisation), RHA (Road Haulage Association) and FIATA. Membership to any of these associations is beneficial as it shows the freight forwarder has accessibility to the mainstream transport providers and shows the forwarder has passed certain checks to become an affiliate.

The next decision is whether to go for one of the major carriers. We have all heard of them, those that operate their own flights or vessels, you may not get the best deal money wise or the personal touch but the job will be done. The other alternative is a non-vessel operating common carrier (NVOCC) which are equally as reliable but a little more personal which many companies find supports them through the shipment process. Rates with NVOCC’s vary but most of the time a better deal can be made by tailor making the service you require.

Whichever option is chosen the importer or the exporter will be ultimately responsible for the shipment. So, it is of the paramount importance if you are exporting or importing you choose the right freight forwarder. Not knowing global regulations can be costly to your business, so using a professional company will avoid these problems as they process in accordance with the relevant current laws.

We are all aware in this day and age that there are certain articles you wouldn’t want to be loaded onto an aircraft, train, vehicle or boat that you may be traveling on but are still there. Whether that be a container of some pathogen samples of a deadly contagious disease, a drum of chemicals or a crate of explosives. Articles of this nature are always having to be moved and for the most part we are aware that there are special protocols we have to adhere to, to get these moved in the safest but most efficient way. There is however increasing worry within the freight forwarding industry that a major catastrophe is around the corner, due to a rise in undeclared dangerous goods being transported by inappropriate means and lacking the correct packaging and paperwork.

The most well documented case of this was as far back as 1996. A low-cost carrier, Valujet Airlines operated in the USA and Canada during the 1990’s. However, on 11^th May 1996, Valujet flight 592 crashed into the Florida Everglades killing all 110 crew and passengers on board. The cause was hazardous goods – Chemical Oxygen Generators, which had been illegally and incorrectly stowed in the cargo hold of the aircraft.

Smaller incidents also occur. A Dentist sent some dental supplies from the Middle East to Sydney Australia. He used the postal system to send this. However enclosed was a small glass container of around 100mls of mercury. This cracked and started to spill during transport but was luckily discovered. Had it not been found the mercury would have caused the outer body of the aircraft to be weakened and susceptible to a mid-air incident.

By now, we’ve all heard in the news that there have been issues with fires being caused by the latest Samsung phone and the lithium battery within it. However, did you know that lithium batteries are contained in some other everyday articles? Robotic lawnmowers, wheelchairs, kids hoverboards, Bluetooth lightbulbs and some torches are all examples of items containing them. The lithium batteries within these articles pose a fire risk, so all need to be packed and transported in the correct manner. Lithium batteries are the obvious items to look at but It’s not just those that pose a risk to the sector. Everyday articles like the latest nail varnish, machinery parts or film equipment can also be hazardous.

The rise of e-commerce business is a fast-growing sector and also a key area for concern. People can buy used or brand-new items from individuals off public auction websites. In these instances, the seller may not have full knowledge of the articles they are selling and potential restrictions upon them. These items can simply be popped into a small parcel and sent through the post with little thought to any implications this may have. Throughout the Christmas period there is an increased risk from the public sending Christmas parcels to loved ones. A family member or friend might want to make a light-hearted joke and add in a party popper or a Christmas cracker into the parcel they are sending. This might seem innocent enough but these items are hazardous. They contain a small trace of explosive to make the “pops” and “bangs” which again could cause a fire hazard.

There seems to be a certain level of naivety amongst the public on this subject. So, what can be done to avoid dangerous situations from arising in the first place?

In the first instance the person sending the articles has a responsibility to check with the postal / forwarding companies that what they are sending is suitable for transporting. This can be done in person, over the phone, or online. The carriers also need to do their part and to be more thorough when taking bookings. Specifically asking what the content is. Not just “is there anything hazardous contained within the article?” As already outlined, the majority of the general public can quite innocently believe that what they are sending isn’t hazardous as it doesn’t cause an immediate danger to themselves. Further down the supply chain, training and awareness is key, which requires investment from the carriers. Above all sufficient deterrents need to be put in place by the CAA to encourage correct practices in the first place. With technological developments happening at an increasing rate, investment in this area needs to start increasing to combat this ever-growing threat to public safety.

2016 is on course to be the hottest year on record. Temperatures are standing at a minimum of 1 oC above average and with experts warning that by 2040 there could be no Artic sea ice left, the shipping industry like many other sectors is receiving enormous pressure to reduce carbon emissions. By 2050 the sector is expected to account for 17% of the worlds emissions – which is the same as those produced by Germany, making it a fast-growing source of greenhouse gases.

International negotiations on climate change have previously excluded the aviation and ocean freight shipping sectors. The nature of shipping means that the emissions are discharged within the jurisdictions of many countries not just from where they originate, so there is trouble allocating the gases to a particular nation to take responsibility. Attempts to include the UN ‘s International Maritime Organisation (IMO) and The International Civil Aviation Organisation (ICAO) into The UN’s climate agreements have also so far been unsuccessful but a new chapter appears to be on the horizon for the industry.

On the 6^th October 2016 at the 39^thAssembly of the ICAO within its headquarters in Montreal, the first deal to control carbon emissions within the aviation industry was agreed. A pilot phase for a Carbon Offset Scheme will start in 2021 through 2023, with the first phase from 2024 and the second phase 2027 till 2035. This second phase would see all states included with a few exceptions. The carbon offset scheme outlines that any rise in emissions will be offset by such activities like tree planting or implementing clean energy technology within upcoming businesses. Many argue that this is a weak commitment by ICAO who up until the beginning of the month had been promising a plan to align the aviation sectors emission agreement with The Paris Climate Agreement of keeping global warming below 2oC agreed last year.

The aviation sector is searching in other ways to reduce costs and environmental impact and has already started switching to a lighter fuel type. It is advantageous, by means of reducing costs and travel time within the industry. There have also been technological advances in recent years. The release of the Boeing Dreamliner 787 is an example of this. It is a lighter plane than its predecessor the Boeing 767 and as a result is proven to be 20% more fuel efficient. All positive moves and is a step in the right direction.

The agreement on the 6^th October and the advances within the aviation sector has put enormous pressure on IMO to make its own contribution to lowering emissions. Ocean vessels can carry heavier low grade fuels than an aircraft and unlike the aviation sector there is no financial incentive to use greener fuels. These low-grade fuels are cheap to use unlike the green fuels so why should the ocean industry change its practices and increase its costs in an already limited profit margin sector? On the 28^thOctober at the IMO London Headquarters an agreement was made to cap sulphur emission from ships but not greenhouse gases. The sulphur cap will be at 0.5%, which as some levels of maritime fuels stand at 3.5% is a large reduction. A seven-year plan was also drawn up starting with a strategy for addressing the carbon emissions being published in 2018 and then for large ship owners to confidentially provide the IMO with information relating to fuel consumption beginning in 2019. However, the IMO has been criticized for the plan lacking in an end game and with no ship yards having plans to manufacturer greener vessels, there are now calls to the EU to include ships emissions in its climate target of 2030.

At this stage, there is reluctance from the customers for large price increases to accommodate the vessels using greener fuels and little is known what will be contained within the strategy being published in 2018, no one knows what steps the IMO will take next in this growing area of concern. Many are hoping however that there will be a firm plan with targets being put into place by the IMO to start tackling this issue from 2023.

London Heathrow Airport has changed beyond recognition since being transferred to the Minister of Civil Aviation on 1^st January 1946. Back then it started out as merely a tented village where passengers reached the aircraft across duckboards. The airport handled only 63 thousand passengers in its first year and was not called Heathrow Airport. Simply then known as London Airport, things didn’t start to change until the late 1950’s when it was awarded the IATA code LHR.

There are many factors which make up London Heathrow. Most people know Heathrow as the home of Concorde. Did you know that an original Concorde is still housed at the airport? Concorde 208 G-BOAB (“Alpha Bravo”) was used for commercial flights and was launched in 1976. It made its final journey in August 2000 from New York to London Heathrow and is now sited at the end of runway 27L, so it can be viewed by the passengers of the airport.

As the world’s third busiest airport, running Heathrow is a 24/7 operation. Flights do not operate 24 hours a day however. Flights start arriving from 04:30 with departures at 06:00. Flights then stop at 23:30 every day. During the time the flights are stopped essential maintenance work is carried out on the runways and aircraft, engineering work is completed, cleaning takes place, systems are serviced and outlets restocked. It costs over £975 million per annum to run Heathrow and back in 2013 cost £20 million alone to resurface the south runway.

Heathrow is the UK’s only Hub airport and Europe’s busiest, operating over 1,400 flights a day. That’s nearly half a million each year or one every 45 seconds. Terminal 5 is the largest free standing structure in the UK. Inside, its security lanes aim to process 35 passengers per 15 minutes and throughout the summer the terminal is at its busiest, with more than 100,000 people per day using its facilities.

Everyone within the Heathrow community contributes to the safety and security of the airport. London Ambulance Service has a team of first responders in all terminals. They operate throughout the terminals on mountain bikes to get to the passengers quickly but safely. In 2008 Heathrow Airport Watch was set up for Aviation Enthusiasts to report anything suspicious to the aviation police. Aviation Enthusiasts are issued identity cards after background checks are completed which easily identifies them to airport officials.

Heathrow has undergone massive changes over the last decade. Terminal 4 completed a major refurbishment after British Airways relocated to the newly opened Terminal 5. The old Terminal 2 buildings were demolished and rebuilt, opening to the public in June 2014. A new state of the art Air Traffic Control Tower was opened in 2007 at 285-foot-tall. At the time this made it the UK’s tallest tower. Housed within are the air traffic controllers to which Heathrow employs 65, trained by the college of Air Traffic Control.

Still in discussion and debate is whether Heathrow should expand further to gain a third runway and Terminal 6. It does already have a “6^th Terminal” however, The VIP Suite also known as The Royal Suite has two dedicated stands RS1 and RS2. It is used for private aircraft by visiting heads of state, certain high ranking celebrities and The Royal Family.

With all this development Heathrow is well placed to transport over 73 million passengers worldwide and handles them by employing over 76 thousand people. The demand for air travel continues to grow whether it is for the business or leisure sector. By placing itself in a constant pattern of regeneration, Heathrow should continue to attract travellers from the world over and keep developing itself as a pioneer of airport innovation.

How not to miss the boat on those last sailing dates for delivery before Christmas 2016.

Without a shadow of a doubt Christmas is an exciting but stressful time of year, regardless of what your position may be. From the personal side of keeping on top of the social commitments, (whether it be your own or those of your children), to the business side of ensuring everything is finalised for the end of the year and prepared for the new. Something inevitably slips from mind and as a freight forwarder we expect this. We receive every year towards the middle of November a telephone call. “I need an order out of XYZ via ocean which needs to be here by Christmas.” A lot of the time it will also include, “We will be on production stop when we reopen if it’s not here by then”.

If this sounds like what happens to you then with exception to planning ahead and making the necessary arrangements in advance is there anything else, you can do?

Have you heard of a sea / air option, it’s still a possibility and worth exploring? If your product is from China, why not consider the rail route via the Old Silk Road? Its sounds a little long winded but could help save on your transit time. Either option could save substantial time and course less of an impact on your supply chain. Another alternative is short term warehouse storage. Has your forwarder got a warehouse they can house your cargo in? If so transferring the cargo to their facility until the new year could be the best solution. Housing cargo in the shipping or airlines warehouse is extremely expensive and also could compromise the integrity of the cargo. With a forwarder they will take better care of your order. The final option if cost permits is a full air freight solution.

There is nearly always a solution to this situation but to help you to try and avoid being in this position Atlas Logistics UK Ltd has come up with this basic latest date ocean shipping guide. These estimated dates and transit times allow for substantial leeway. Of course please check with the team at your local Atlas office for further details. Please note these dates are subject to availability and change dependent on the shipping schedules and shipping lines.

Heathrow airport is the third busiest airport in the world after Atlanta in the US and Beijing, China. In 2015 the airport handled 75 million passengers. Heathrow employs 76,000 people within the airport boundary and everyday 1,400 flights take off and leave which equates to one every 45 seconds, almost half a million a year!

In June 2015 it was announced that plans were to start being put into place for a third runway at Heathrow Airport. Whether you are in favour, against the proposal, or maybe un-decided here are a few key facts about the controversial proposal.

The below discusses two main points (cost and environmental effect) against building the third runway.

The plan to build the new 3,500m runway has been estimated at a cost of £18.6bn. Who will be paying for this, well the money to build the runway will mostly be paid for privately but there is no doubt that as UK tax payers we will all pick up some of the cost for the additional infrastructure. It has been estimated that this total could be in the region of £5.7bn. You then have to consider the impact on the cost of the airfares. To pay for this work the airport will undoubtedly have to charge the airlines more to land which may lead to passengers seeing an extra cost on the flight prices.

From an environmental point of view there obviously will be an increase in both noise and air pollution should the third runway go ahead. Friends of the Earth campaigner Jenny Bates says: “The overall business case for further expansion of our airports is just not convincing, as it is not compatible with meeting our climate change targets.” HACAN ClearSkies have said on the matter that, “The noise impact of a third runway would be unacceptable. According to the EU, 725,000 people live under the Heathrow flight path; that is, astonishingly, 28% of all people impacted by noise right across Europe. A new runway would add around another 150,000 people affected by the proposed flight path.

So how about the reasons to go ahead with the proposal.

Without increasing airport capacity, the UK will lose out on business competitiveness and tourism. Lack of airport capacity is often cited as a constraint on expanding UK business. Heathrow is the quickest option to build a world class hub airport.

With already good existing transport links to Heathrow the extension is seen as a cost effective way to create additional capacity which will connect Britain to 40 new destinations and increase long haul destination which would open doors to new market opportunities which in turn will only have a positive effect on our UK economy.

Heathrow have stated that there could be a possible 40,000 extra local jobs created by the expansion to the airport. As one of the UK’s largest single-site employers they are focussing on apprenticeships and have estimated the figures to double to 10,000 by 2030. There are five boroughs surrounding Heathrow (Ealing, Hillingdon, Hounslow, Slough and Spelthorne) where youth unemployment counts for a third of total unemployment. Should the expansion go ahead it has been said that it could potentially end the youth unemployment for all five boroughs.

The question therefore is do you feel that the third proposed third runway at Heathrow should go ahead? No doubt this will be a hot discussion topic for many before any decision is made. However one thing is for sure it will have an impact either way on those that live in the surrounding area and those that work at Heathrow airport and even closer to home – the logistics industry.

As the country moves forward BIFA that represents UK freight forwarders has reported that it will campaign to support our industry in negotiations to prevent over complicated trade procedures.

British International Freight Association (BIFA) Director General, Robert Keen explained “BIFA is a neutral body and will now be looking at the ways in which we can support our members as the forthcoming legislative changes become apparent between now, the day that the UK formally triggers the resignation process and the date the country’s exit becomes effective”.

Both UK transporters and the cargo industry warned that exit negotiations must make sure that the cargo will keep flowing on both sides. Following the result of a ‘leave’ outcome in the European Union referendum, the Freight Transport Association (FTA) have said that “coming out of the EU dangers new expenditures, restrictions and bureaucratic necessities being imposed on moving items in and out of Europe and the UK as well”.

This statement suggests that the decision to exit the European Union may have a negative impact on freight movement. However this is only one view and as we all know there are definitely two sides to this particular topic.

Chief David Wells of FTA stated Europe will stay a great export market and the UK will continue to have an excessive share of imports. He also commented that the UK cannot allow new bureaucratic burdens to abate the effective motion of exports and imported items destined for British buyers.

What we do know is that the next two years will be extremely important and the government need to use this time to make sure terms currently imposed on other non-European member states will not be imposed on UK freight flows. Whilst Britain will be out of the European Union, we are not out of the industry and FTA will undoubtedly be leading the campaign on behalf of exporters and importers to keep exchange tactics simple and try to keep the charges of international transport down.

As of today the 6^th July 2016 the UK is still a member of the European Union. It is far too soon to start speculating the impact “Brexit” will have on our industry and we’re sure that in the forthcoming years the impact will become clearer.

Whether you are in the “leave” or “remain”camp, Britain has the fifth best economy in the world and with unity we will make our future a positive and successful one.

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